EY Life Sciences

Our global reachAgainst a backdrop of regulatory, digital, financial and global transformation, Life Sciences companies are finding integration and adaptability critical for success. Our worldwide team of 190,000 industry-focused management consulting, compliance, business development and tax professionals — with deep sector knowledge and technical experience — can help you address these myriad changes and compete effectively in this dynamic environment. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

Strength and depth in the Life Sciences sectorEY is known for its deep power and Life Sciences sector knowledge, relationships with the industry’s key stakeholders, and strong global capabilities. Clients see us as the most globally connected organization among the Big Four. Whether you are already active in multiple geographies or are planning to expand your business to other countries, we can assemble a multinational team that combines deep industry knowledge, experience resolving the issues you are facing, and savvy local advice.

Our Global Life Sciences Team is committed to delivering industry insight that creates value for you. It connects our Life Sciences professionals worldwide and serves as a hub for sharing industry-focused knowledge to help you succeed in a changing world. We make it our business to understand your business and to keep our advice relevant to your needs. We work with you as you transform your business, helping you anticipate the pitfalls and lock in the results on which your future depends. EY serves all of the Forbes Global 2000 top 10 life sciences companies and audits 26% of the global life sciences companies on the list. In addition, EY audits 30% of revenues of the global life sciences companies on the Forbes Global 2000 list.

This broad and deep exposure means we understand the dynamics of the sector and the underlying drivers of the leading actors and our Global Life Sciences sector team, is dedicated to offering industry insight and coordinating a network of more than 7,500 Life Sciences professionals worldwide who are ready to develop practical approaches to solving your problems.

The current unit-based pricing model for drugs is too one-dimensional for the market's present needs. Pharma firms must identify products that will benefit from innovative pricing models, and then forge the types of collaborations that will support those models.

Over the last few years, health has moved towards an outcome-driven and patient-centric ecosystem. This era is driving patients, payers and healthcare providers to become super-consumers, with pharmaceutical companies needing to create real information evidence from all the data that they have at their disposal. However, with the exponential proliferation of digital data and the increasingly fragmented nature of enterprise systems; organisations everywhere are suffering from data chaos.

Mergers and acquisitions (M&A) in the biopharmaceutical industry skyrocketed in 2015, with the value of 2015 announced deals totalling more than US$300b, a new record for the industry, according to EY’s Firepower Index and Growth Gap Report 2016, released today. Much of this activity was driven by companies seeking to create more focused businesses and close persistent revenue "growth gaps". The previous industry M&A record was set in 2014 exceeding US$200b in aggregate value.
In 2016, a renewed focus on value-based drug pricing, staunch competition across key therapeutic battlegrounds and consolidated payer clout may exacerbate existing growth gaps, resulting in a continued feverish deal environment for this year and beyond.
The EY Firepower Index measures biopharma companies' ability to fund M&A transactions based on the strength of their balance sheets and their market capitalization. Thus, a company's firepower increases when either its market capitalization or its cash and equivalents rise – or its debt falls.

EY's Global Corporate Divestment Study (GDS), focuses on the lessons corporates can learn from private equity firms—from improving portfolio reviews to divestment execution. The study is based on interviews with 900 global C-suite executives and 100 PE executives, plus external market data. The study is accompanied by sector cuts, including Life Sciences available on this page.
No longer a sign of weakness or failure, divestment in life sciences continued to heat up last year. In fact, 87% of life sciences companies say their most recent divestment created long-term value in their remaining company. Expiring patents along with regulatory and reimbursement changes were significant divestment drivers. As we move forward over the next year, divestment triggers are changing. Our study found that one-third of life sciences companies plan to divest, largely because they lack capital to fund opportunities. These companies are increasingly divesting to reallocate capital to the core, coupled with investing in innovative technologies and products that are being developed externally. An interesting shift in 2015 was that nearly half of companies from our study said they rarely consider monetizing R&D projects or seeking third-party funding. The feeling is that R&D is too important of an asset to sell or spin off to outside parties. However, companies with this philosophy may end up spreading management time and budgets too thin. In addition, many parties cannot agree on valuation for pre-clinical assets, resulting in further difficulty completing a deal. Regardless, in a crowded and competitive market, more and more leading life sciences companies should consider pooling R&D assets — sharing new ideas and upside if successful.

The health care and life sciences sectors’ shared mission of improving the quality and longevity of patients’ lives has kept them consistently at the forefront of innovation. Despite this common purpose and drive, it has been difficult for public health care organizations to partner with private life sciences companies in sustained and meaningful ways. Historically, public–private partnerships (PPPs) have focused on the creation of health care infrastructure, including the establishment of hospital buildings and care delivery models. In Europe, we have seen some examples of small–scale PPPs and PPP–hybrid models focused purely on service provision, altering the way in which the participating public organizations receive and pay for health care services. What exactly is a PPP in health care? Is a PPP suitable for our clients?

The current unit-based pricing model for drugs is too one-dimensional for the market's present needs. Pharma firms must identify products that will benefit from innovative pricing models, and then forge the types of collaborations that will support those models.EY Life Sciences

The shift to a patient-centric, outcomes-based business model in Life Sciences has a fundamental impact on R&D. EY can help you adapt your R&D model today so you remain relevant in the future.EY Life Sciences

Over the last few years, health has moved towards an outcome-driven and patient-centric ecosystem. This era is driving patients, payers and healthcare providers to become super-consumers, with pharmaceutical companies needing to create real information evidence from all the data that they have at their disposal. However, with the exponential proliferation of digital data and the increasingly fragmented nature of enterprise systems; organisations everywhere are suffering from data chaos. EY Life Sciences